Chinese Shandong Ling Long to Build 3 Million Sq Meter Tire City in Egypt
Egypt's Minister of Investment and Foreign Trade recently met with officials from China's Shandong Ling Long company to discuss establishing a major tire manufacturing project under the free zone system in Egypt. The meeting marks a significant step in attracting foreign direct investment and strengthening the local automotive and components industry.
Integrated Industrial Complex for Tires
The discussions explored opportunities to build a fully integrated industrial complex targeting the production of passenger car tires and heavy transport vehicle tires. The project will be jointly developed with Egypt's Nile for Trade and Supplies "Fit & Fix" through a special free zone. The facility will include on-site supporting industries for tire and vehicle manufacturing, such as rubber and carbon black production.
Project Located in Borg El Arab on 3 Million Square Meters
The project will be built on an area of up to 3 million square meters in Borg El Arab. According to officials, 90% of the production volume will be directed to export markets, primarily Gulf Arab states and the United States.
Estimated Investment of $2 Billion
The expected investment cost for the project is approximately $2 billion, spread over the project's construction and development phases. The Minister of Investment highlighted the strategic importance of the automotive industry for Egypt, particularly tire manufacturing, and stressed the project's value given its strong export orientation.
Technology Transfer and a Fully Integrated Complex
Chinese company officials stated that the project aims to introduce the latest technical systems and establish a comprehensive industrial complex under the private free zone system. The initiative will facilitate technology transfer to the Egyptian market, contributing to the development of local tire manufacturing capabilities and boosting industrial capacity.
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